Property Market
5 min read
What's happening with Invercargill house prices?
Council area of Southland
Author: Ed McKnight
Resident Economist, with a GradDipEcon and over five years at Opes Partners, is a trusted contributor to NZ Property Investor, Informed Investor, Stuff, Business Desk, and OneRoof.
Reviewed by: Laine Moger
Journalist and Property Educator with six years of experience, holds a Bachelor of Communication (Honours) from Massey University.
What's happening to Invercargill house prices?
The average price of an Invercargill property is $533,016 (QV, January 2026).
Invercargill house prices are up 3.77% over the last three months (REINZ). And they are 11.76% up over the last 12 months.
Quick Facts
- The average price of an Invercargill property is $533,016 (QV, January 2026)
- Over the last 3 months property prices in Invercargill have gone up 3.77%
- Invercargill property prices increased 6.53% per year (on average) in the 20 years between January 2006 - January 2026 (REINZ)
- The average rent in Invercargill is $480 per week (Tenancy Services, December 2025)
How are Invercargill property prices changing?
Invercargill house prices soared after the Covid-19 pandemic began. House prices started out 34% below the eventual peak of the market.
However, after that peak in January 2022, house prices fell 11.02% before bottoming out in May 2023.
Today, Invercargill house prices are up 0.00% compared to their peak. That means prices have risen 23.20% since the bottom of the market.
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Where is Invercargill in its property cycle?
At the absolute bottom of its property cycle, Invercargill was 27.02% undervalued.
Today, property prices in Invercargill are overvalued 23.54%.
That suggests there is a selling opportunity in Invercargill.
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Invercargill suburb prices
I track the value of 24 suburbs in Invercargill. The most expensive suburb is Otatara, which has an average house value of $755,800. While the most affordable suburb is Bluff, which has an average house value of $357,150.
Over the last 24 months of all Invercargill suburbs (January 2024 - January 2026, Clifton had the fastest-growing house prices. They have gone up 17.15% over that period.
The suburb that grew the slowest over that period was Otatara. Property values in this suburb grew by 4.80% over those 2 years.
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What is the Invercargill rental market like?
Here's how rents are changing in Invercargill. Over the last four years (December 2021 - December 2025) the median rent has gone up $100 a week. That's 6.01% a year (on average).
Over the last 12 months, rents have gone up. They are up 4.35% ($20 a week) year on year.
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Are properties selling above or below CV in Invercargill?
One of the most common questions I get asked is: 'Ed, are properties selling above or below their Capital Value (CV)?'
Some call it the RV (Rateable Value) or GV (Government Value).
Why do people care? Well, if you go on TradeMe (or another website), you’ll almost always see the council’s valuation for the property. So even if the seller hasn't advertised a price, you can get a feel for what the property might sell for.
This table shows whether the average property is selling above or below CV across Southland.
The area in Southland selling the highest vs CV is Invercargill City where house prices are current selling 21% above CV.
The area in Southland selling the lowest vs CV is Southland District where house prices are also selling 11% above CV.
Where do house prices grow the fastest in the Invercargill property market?
Where do house prices go up the fastest in Invercargill?
This map lets you find out for yourself.
Each area represents a different suburb, and the colour of the area represents how quickly house prices have increased over the past 20+ years.
The redder the area ... the quicker house prices have grown in that suburb.
The suburb in Southland with the highest capital growth rates between January 2000 and December 2025 was Appleby, which grew at 8.9% per year. (Cotality)
The next highest growth suburbs over the same period was West Invercargill (8.9% per year), and Kew (8.7% per year).
Which suburbs in the Invercargill property market have the highest yields?
Gross yields vary widely depending on which suburb you chose to investigate.
So, which suburbs in the Invercargill property market have the highest gross rental yields?
Navigate the map to find the suburbs where houses produce the most cash for their investors.
The suburb in Southland with the highest yield is Mataura, which has an estimated gross yield of 7.8%.
That is followed by Kew (7.0%), and Clifton (6.6%).
Other property markets to look into
If you found this article useful, then you might also like our analyses on the other property markets in New Zealand. You can read all about the Southland property market here.
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This property market information is for your general information. It’s not financial advice. See here for details about our Financial Advice Provider Disclosure. So Opes isn’t telling you what to do with your own money.
We’ve made every effort to make sure the information is accurate. But property markets change, and we occasionally get the odd fact wrong. Make sure you do your own research or talk to a financial adviser before making any investment decisions.
You might like to use us or another financial adviser.